Markets rally amid robust Q2 earnings, positive macro data
Mumbai: The BSE Sensex made an emphatic comeback on Monday after three sessions of heavy losses as participants returned to equities amid robust corporate earnings and positive macroeconomic data.
Investors' wealth on Monday jumped by over Rs 3.64 lakh crore as markets made a dashing comeback after three sessions of heavy declines.
Reclaiming the 60,000 level, the 30-share Sensex rallied 831.53 points or 1.40 per cent to close at 60,138.46. Similarly, the NSE Nifty rose 258 points or 1.46 per cent to
17,929.65.
IndusInd Bank stole the show in the Sensex pack, surging 7.46 per cent, followed by Bharti Airtel, HCL Tech, Tata Steel, Tech Mahindra, Dr Reddy's and SBI.
Market major HDFC advanced 1.74 per cent after the mortgage lender reported a 32 per cent rise in standalone net profit to Rs 3,780 crore for the September quarter
Only four index constituents closed with losses — Bajaj Finserv, M&M, Nestle India and Reliance Industries, slipping up to 1.74 per cent.
"Domestic indices bounced back on a positive footing from the recent sell-off, due to strong momentum in global markets, favourable domestic economic data and good Q2 results announcement.
"India's manufacturing PMI increased to 55.9 in October from 53.7 in September as output and new orders improved amid easing COVID restrictions. The sustenance of the trend will depend on the views provided by Fed regarding the current easy money policy to be announced on Wednesday," said Vinod Nair, Head of Research at Geojit Financial Services.
On the macroeconomic front, GST collections surged to Rs 1.30 lakh crore in October, the second highest since its implementation in July 2017, indicating economic recovery from the COVID-19 pandemic and impact of
festive demand.
However, supply constraints in the automotive sector kept the street cautious, said S Ranganathan, Head of Research at LKP Securities.
All sectoral indices ended with gains. BSE realty, telecom, metal, teck, IT and basic materials rallied as much as 3.56 per cent.
In the broader markets, the BSE midcap and smallcap indices spurted up to 1.79 per cent.
Elsewhere in Asia, bourses in Seoul and Tokyo ended with gains, while Shanghai and Hong Kong were in the red.
Stock exchanges in Europe were trading on a positive note in mid-session deals.
The rupee pared its initial losses to settle marginally up by 1 paisa at 74.87 against the US dollar on Monday following a firm trend in the domestic equities.
At the interbank foreign exchange market, the domestic unit opened on a weak note and slipped below the 75 per dollar mark. The rupee touched a low of 75.04 and a high of 74.84 during the day before closing at 74.87, up 1 paisa from its last close.
On Friday, the rupee had closed at 74.88 against the US dollar.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.02 per cent to 94.14.
Meanwhile, international oil benchmark Brent crude rose 0.82 per cent to $84.41 per barrel.
Moreover, foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth Rs 5,142.63 crore, as per exchange data.
